The Nifty Outperformed and Closed with Gains; However It could not Sustain at the Higher Level

NIFTY:

The NIFTY opened at 21812.75 with a gap up of 115 points. The index continued its early morning bullish momentum and saw a sharp rally but soon started a consolidation process. Prices eventually broke on the upside, and saw another upside surge but faced resistance in the afternoon session and started drifting downwards. The down move brought prices back to its opening tick. The index again started a consolidation that lasted till the end. The NIFTY recorded its intraday high at 22126.80, its intraday low at 21805.55, and finally closed at 21853.80 with a gain of 156.35 points or 0.72% up. OIL GAS outperformed, saw a sharp upside move, and closed with a gain of 3.58% followed by METAL and IT as they have closed with over 2% gains. BANK, FINANCIAL, and FMCG underperformed and ended lower. The long-term trend is down while the long-term momentum has turned up before reaching the weak zone. Both the momentums have aligned on the upside suggesting higher levels may be ahead.

BANK NIFTY:

The BANK NIFTY opened at 46568.20 with a big gap-up of 362 points. The index could not sustain at the higher levels and started drifting downwards. Prices found support soon and saw a sharp rally. The rally found resistance around 46900 and prices started a decline. The index kept on sliding lower for the whole day and gave up all the gains. The intraday high was recorded at 46892.35, the intraday low was recorded at 45901.25, and finally, the index closed at 45954.65 with a loss of 252 points. PSU BANKS have significantly outperformed, saw a sharp upside move, and finally ended with a gain of 2.22%, PVT BANKs have underperformed, saw a mild downside move, and ended with a loss of 0.72%. Within the index, in terms of points, PNB contributed the highest on the upside while HDFC BANK contributed the lowest. The short-term trend is sideways. We have been tracking support around 44500 while resistance around 46500. The index, crossed above 46500 but as the day progressed, prices eventually came back and closed within the 44500-46500 trading range for the twelfth consecutive trading day.

DERIVATIVE PICKS

TOP  DELIVERY PERCENTAGE

UPCOMING ECONOMIC DATA

NEWS UPDATES

• After a muted reaction to the Interim Budget in the previous session, the market posted solid gains on February 2, with Nifty hitting a new high of 22,126.80 and the Sensex rallying more than 1,400 points. The benchmarks gave up some of the gains to close off the day’s high. The Sensex ended 440.33 points, or 0.61 percent, at 72,085.63, and the Nifty 156.30 points, or 0.72 percent, at 21,853.80.

• In a bid to de-emphasise disinvestment as a source of fiscal resources, the central government has deliberately avoided keeping a specific target in the interim Budget for 2024-25, Finance Secretary TV Somanathan told Moneycontrol in an interview on February 2.

• Veteran investor Samir Arora of Helios Capital says Paytm may not have a corporate governance issue as opposed to an issue within the regulated bank and non-regulated fintech entities. Paytm became the focal point of analysts and investor alike since the Reserve Bank of India imposed restrictions on its lending business. This included restrictions against accepting new deposits and carrying out credit transactions after February 29.

Source: Economic Times,  Indian Express, Business Today, Livemint, Business Standard, Bloomberg Quint

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